Day Traders Diary
The major averages fell sharply int the close to notch the worst month since 2008 for the Nasdaq index as Amazon became the latest victim in the technology-led sell-off. The tech-heavy Nasdaq Composite fell 4.2% or 536 points to 12,334. The index closed at a new low for the year. The S&P 500 retreated 155 points or 3.6% to 4,131. The Dow Jones Industrial Average shed 939 points, or 2.77% to 32,977.
Stocks were set to close out a dismal month as investors have contended with a slew of headwinds, from the Federal Reserve's monetary tightening, rising rates, persistent inflation, Covid case spikes in China and the ongoing war in Ukraine.
The Nasdaq fell 13.3% in April, its worst monthly performance since October 2008 in the throngs of the financial crisis. The S&P 500 is down more than 7%, its worst month since March 2020 at the onset of the Covid pandemic. The Dow is off by nearly 4% for the month.
Technology stocks have been the epicenter of the April sell-off as high interest rates hurt valuations, and supply chain issues stemming from Covid and the war in Ukraine disrupt business.
Amazon on Friday sunk about 14% — its biggest drop since 2006 — after the e-commerce giant reported a surprise loss and issued weak revenue guidance for the second quarter.
The Nasdaq Composite sits in bear market territory, roughy 24% below its intraday high. The S&P 500 is off its record by more than 14% and the Dow is nearly 11% lower.
Friday wraps up one of the busiest weeks for the first-quarter earnings season and a particularly intense one for tech companies, which have driven investor sentiment throughout the week.
Apple shares fell more than 3% after management said supply chain constraints could hinder fiscal third-quarter revenue.
Intel also reported earnings Thursday evening. The stock fell 6.7% after the company issued weak guidance for its fiscal second quarter.
About 80% of S&P 500 companies have beat quarterly earnings expectations, with roughly half of the index's members having reported results so far, according to FactSet.
A hot inflation reading Friday underscored the difficult environment. The core personal consumption expenditures price index — the Fed's preferred inflation gauge — rose 5.2% from a year ago.
Next week, investors are awaiting the Fed's policy meeting, the April jobs report and a flurry of corporate earnings from the likes of Pfizer, Starbucks, Uber and more.
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